8 Replies Latest reply on Jan 28, 2016 6:18 AM by ChitoReyes

    Credit Limit?

    maan03

      What is credit limit? Ayon sa pagkakaintindi the globe should not bill me beyond my credit limit.

      1500 credit limit ko pero globe billed me 2100

        • Re: Credit Limit?
          ChitoReyes

          As defined in the Terms and Conditions of Globe, credit limit is "the maximum recurring charges which you may subscribe to"    and pertains to the Monthly Recurring Fee (MRF) or simply the plan you are subscribed to which does not include additional charges billed ON TOP of your plan.

           

          As opposed to "Spending Limit" which "represents your cap which will enable you to manage your usage within a billing cycle" ... the 2 are different things and applied differently.

          • Re: Credit Limit?
            neilph

            Hi maan03 .  I don't think that is the case. Credit limit refers to the maximum amount of charges that the subscriber can make to his account, determined by Globe based on your paying capacity. Actual charges can be lower or higher. If lower, there's no problem. If higher, Globe will ask you to bring it down below your credit limit by paying the full or part of outstanding balance. If your usage always exceeds your credit limit, you may ask for a higher credit limit, subject to credit policies.

              • Re: Credit Limit?
                maan03

                Salamat Neil!

                  • Re: Credit Limit?
                    ChitoReyes

                    Please be aware that "Credit limit" as defined in Globe's terms and conditions is different from "credit limit" as defined by credit card companies. Again I reiterate that Globe's credit limit is defined as  "the maximum recurring charges which you may subscribe to"    and the reason why you were billed more than you were expecting. This happens in a lot of cases because your MRF does not exceed Globe's assigned credit limit but your usage on top of it may.

                     

                    Example 1:

                    Credit limit = Php 1,000.00

                    Plan subscribed to: MRF = Plan 999 (Php 999.00)

                    Usage on top of Plan 999 = Php 2,000.00

                    Total Bill (Php 999 + 2,000) = Php 2,999.00

                     

                    In the scenario above, Globe will NOT suspend your account just yet.

                     

                    Example 2:

                    Credit limit = Php 1,000.00

                    Plan subscribed to: MRF = Plan 999 (Php 999.00)

                    Usage on top of Plan 999 = Php 0.00

                    MONTH 1 Total Bill  = Php 999.00 and subscriber did not pay for Month 1

                    MONTH 2 Bill will be Php1998.00 (MRF 999.00 x 2 months)... Subscriber may be suspended as the amount has already exceeded the prescribed Credit Limit based on Globe's definition.

                     

                    I hope the above scenarios paint a better picture as to how Globe applies this.

                • Re: Credit Limit?
                  inzeyn000

                  So in short, credit limit is the ceiling/maximum for unpaid balance?

                   

                  SPENDING LIMIT = maximum amount you can spend within a billing cycle (once exceeded, your account will be temporarily suspended

                  CREDIT LIMIT = maximum outstanding balance (cumulative).

                   

                  Enlighten me if this is correct.

                    • Re: Credit Limit?
                      ChitoReyes

                      In its latest Terms and Conditions, Globe once again has REDEFINED the term "credit limit". (Please check your contracts before signing as Globe is known to change definitions from time to time)

                       

                      Credit Limit is now defined as the "allowable cap of usage within a billing cycle" .